Seoul: South Korean stocks closed higher Monday, rebounding from a steep decline the previous session, as investors scooped up major chipmakers, including market heavyweight Samsung Electronics. The local currency gained ground against the greenback.

According to Yonhap News Agency, after a choppy trading session, the benchmark Korea Composite Stock Price Index (KOSPI) gained 22.86 points, or 0.31 percent, to close at 7516.04. On Friday, the index had dipped by more than 6 percent due to extended foreign sell-offs of tech stocks and rising inflation concerns amid a deadlocked situation in the Middle East.

The index initially opened lower as investors tracked declines on Wall Street last week, influenced by rising global bond yields amid inflation concerns. The KOSPI extended its losses in early trading, falling as low as 7,142.71, down about 5 percent at one point, which prompted the bourse operator to activate a sell-side sidecar program for five minutes.

However, the index later turned higher, supported by gains in large-cap chip stocks. This shift came after a district court partially accepted Samsung Electronics' request for an injunction to block a planned strike later this week. Samsung Electronics jumped 3.88 percent to close at 281,000 won after opening sharply lower, while SK hynix gained 1.15 percent to close at 1,840,000 won.

In currency markets, the Korean won was quoted at 1,500.3 won against the U.S. dollar at 3:30 p.m., up 0.5 won from the previous session.